Using a VA loan to buy a multi-unit property is a great way to build wealth

Using a VA loan to purchase a multi-unit property (up to four units) is a powerful wealth-building strategy known as "house hacking," allowing veterans to live in one unit while rental income from the others covers the mortgage.

Using a VA loan to purchase a multi - unit property is a great way to build wealth

Key Benefits of Multi-Unit VA Loans

$0 Down Payment: Veterans can purchase a 2, 3, or 4-unit property with no down payment, provided they occupy one unit as their primary residence.

Using Rental Income to Qualify: Lenders often allow you to use up to 75% of the projected rental income from the extra units to help you qualify for a larger loan amount.

Commercial Potential on a Residential Loan: While properties with 5+ units require commercial financing, a 4-unit property still qualifies for a residential VA loan with lower interest rates and better terms.

Important Requirements

Occupancy: You must intend to move into one of the units within 60 days of closing.

Cash Reserves: For multi-unit properties, the VA often requires "cash reserves" (typically six months of mortgage payments) to ensure you can handle vacancies.

VA Appraisal: The property must meet VA Minimum Property Requirements (MPRs) to ensure it is safe, sound, and sanitary.

To begin, you can request your Certificate of Eligibility (COE) through the eBenefits portal and contact John Catalano and the HEROES Real Estate Team to get you started on your home buying journey. Using a VA loan to purchase a multi-unit property is a great way to build wealth. Let the Heroes Program help you start building wealth for your future.

John Catalano is the owner - operator of the Heroes Real Estate Program. Established in 2007, John and his team of professionals have been helping heroes and their families with all their real estate needs. Thinking about buying or selling a home or an investment property, let the Heroes Team protect you throughout the process and after. John Catalano is a retired Law Enforcement Officer from Los Angeles who continues to give back to the community.